Performance Management

Performance Management System: What You Need to Know

A Performance Management System (PMS) is much more than a tool for employee reviews. It is a central building block for specifically managing employee performance, achieving company goals more efficiently, and establishing a performance-oriented corporate culture in the long term. In this blog post, you will learn what really makes a Performance Management System, what types exist, and why companies without an effective PMS fall behind in competition.

1. What is a Performance Management System?

A Performance Management System is a structured method that enables companies to continuously measure, promote, and optimize employee performance. It includes tools and processes such as:

• Goal Setting: Clear, measurable goals that are linked to company strategies.
• Feedback Loops: Regular, structured feedback instead of one-time annual reviews.
• Employee Development: Individual development plans based on identified strengths and weaknesses.

Facts:

• 78% of companies using a PMS report a significant increase in employee productivity.
• The most common challenge without PMS is lack of transparency in performance evaluations.

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